To be filed in the, well duh column. Hackers attacked crypto ATM machines made by General Bytes to steal millions in Bitcoins from would be users.

What Happened?

Crypto ATMs work differently than a standard ATM machine. Instead of an ATM debit card, users enter credentials to connect to a Crypto Application Server that manages their crypto wallet.

This is all well and good, except…General Bytes ATMs let users upload videos. Hackers exploited this capability and uploaded malicious code instead of a video. The malicious code executed allowing the hackers to syphon off more than $1.5 million from customer accounts.

Per usual, crypto is unregulated and provides no recourse for these types of theft. The customers are on their own and have lost their money.

General Bytes will no longer manage Crypto Application Servers for their customers leaving the liability up to the installers. We’ve witnessed several crypto thefts over the years and reported them here. This incident is just the latest, and won’t stop until people get smart about crypto or it gets regulated.